CONTROL
WHAT IS CONTROL?
Control consists of making sure that what happens in an
organization and what is supposed to happen. The control of an
event can range from the event manager simply walking the site
and discussing daily progress with stuff, to implementing and
monitoring a detailed plan of responsibilities, reports and budgets.
The word “control” comes from the Latin contrarotulare,
meaning: “against the roll”: in ancient Rome it meant comparing
something to the official records, which were kept on paper
cylinders or rolls. In modern times, the word has retained some of
this meaning, and the control of any business involves comparing
the progress of all key functions against a management plan to
ensure that projected outcomes are met.
ELEMENTS AND CATEGORIES OF
CONTROL
The process of control involves establishing standards of
performance and ensuring that they are realized. This can be a
complex process, but consists of three main steps:
1. Establishing standards of performance;
2. Identifying deviations from standards of performance;
3. Correcting deviations.
Category of controls according to when the control are
applied:
1. Predicative control tries to anticipate and identify
problems before they occur;
2. Concurrent control measures deviation from the standard
as they occur;
3. Historic controls are mostly organizational controls and
can include analyses of major deviations from an event plan so that
the next event runs more closely to plan.
In order to compare actual and planned progress in managing
an event, points of comparison are necessary. This include the
following:
- Benchmarks are identifiable points in the organization of
the event where a high standard is achieved. Benchmarks emphasize
quality and best practice;
- Milestones, or key dates, are intermediate achivement datas
that stand as guideposts for monitoring an event‘s progress. They
mark particularly critical completion times;
- Identification of deliverables is a method used by project
management. A deliverable is the tangible result of one of the areas
of project management.
Figure 1 illustrates the control process and how each element
fits into the planning process.
Figure 1
Control mechanisms must be:
- Meaningful and efficient: they should be directed only
at those areas that contribute to the success of the event;
- Simple: controls should not be any more complicated
than is necessary;
- Relevant: controls must be prepared to match each area
of event management and they should be distributed to those who
have the responsibility of carrying them out;
- Timely and flexible: deviations from the plan should be
identified early and addressed before they develop further;
- Able to suggest action: the most useful control
mechanisms provide corrective actions to be taken when
members of the event team find a gap between the plan and
reality.
CONTROL METHODS
The aim of the control methods is to highlight areas that
have strayed from the plan so that management can take
appropriate action.
Reports and meetings
Reports that evaluate the progress of an event are the most
common control method. The reports are presented at the
management or committee meetings. The frequency of these
meetings will depend on the proximity of the event date. Many
event managements companies hold weekly meetings with reports
from the teams (or subcommittees) and individuals responsible
for particular areas.
Project status report
The status report is a “snapshot” of the project. WIP (Work
in progress) is the common term used for a project status report in
the event industry. The headings often found in a WIP report for a
large or complex event include:
- WBS: areas filled in according to their progress,
- funds committed: the commitment of funds must be
informal (such as by verbal agreement) but will have an effect on
the amount of funds available,
- risk register: a list of the risks and status of their
treatment,
- variances or exceptions: any changes to the original plans.
Delegation and self-control
The use of subcommittees at a festival is an example of
delegating activities to specialist groups. Part of the responsibility
of each subcommittee is to solve problems before they report.
Since it is impossible for the event manager to monitor all the
areas of an event, this method is valuable because it allows
delegated groups to control their own areas of specialization.
However, the subcommittee must confine its actions to its own
area and the event manager must be aware of possible problems
arising across different subcommittees.
Quality
Quality control is dependent on customer feedback, and on
the role played by event personnel in delivering quality service.
Integrating the practical aspects of controlling quality with the
overall strategy of an event is called total quality management
(TQM). It seeks to create an event company that continually
improves the quality of its services. In other words, feedback,
change and improvement are integral to the company‘s structure
and operations.
The breakeven chart
The simple graphic tool can highlight problems by finding
the intersection of costs and revenue. Figure 2 shows a simple but
effective breakeven chart for an event that is dependent on ticket
sales. For example, the Proms in the Park in Birmingham would
have fixed costs of stage, pyrotechnics and administration costs.
However, the grater the attendance, the larger are the costs of
security, seating, cleaning, toilets and so fort. At one point the
revenue from ticket sales exceeds the costs. At this point, the
breakeven point, the event would be making a profit. If a fixed cost
such as venue hire is increased, the extra number of people needed
“through the door” can quickly be calculated. How would the
organizers attract the extra people to the event? One means might
be increased promotion.
Figure 2
Ratio analysis
There are several ratios that can be used to identify any
problems in the management of an event. These can also be used
for predictive control. Their main function is as indicators of the
health of the event organization. There are two simple ratios as a
useful starting point – known as liquidity ratios, they measure the
extent to which assets can be turned into cash. The current assets
ratio is calculated as:
Current assets
_______________
Current liabilities
It indicates the financial strength of the event company or
organization. The second liquidity ratio is known as the acid test
ratio. Based on the premise that stock cannot always be turned into
cash in the short term, or it may be unwise to do so, this removes
stocks out of the equation. The acid test ratio is calculated as:
Current assets – Stocks
______________________
Current liabilities
Return of capital employed (ROCE), sometimes referred
to as return on investment (ROI), is a significant ratio for any
sponsors or investors in an event, as it is assesses the profitability
of an event. This is expressed as:
Net profit
_____________ x 100 = X per cent
Capital
Other ratios can provide valuable data. The ratio between
net and gross profit is important in deciding the efficiency of the
event for fundraising and in comparing one event to another. This
ratio is called the percentage of profit or the profit margin.
By performing a series of ratios analyses, an event management company can obtain a clear picture of the viability of the
organization and identify areas requiring more stringent control.